The present invention is generally directed to a medical benefits card that can be used to access funds to pay for eligible goods and/or services. More specifically, the present invention is directed to a dual function medical benefits card that can operate on a closed loop network with participating merchants for the purchase of eligible goods and/or and an open loop network with non-participating merchants for ineligible goods and/or services.
In general, insurance companies and health care providers often provide cards with various information thereon that can be used to indicate what goods and/or services the applicable insurance plan covers. Such cards can also be used at a point of sale (POS) in order for the POS to send a transaction to a processor who can determine what level or extent of coverage, if any, may apply to goods and/or services.
In addition, cards may be provided that have an associated account that can only be used for the purchase of eligible goods and/or services. For example, such cards may be linked to a health savings account, or to the MediCare/MedicAid system and the value associated therewith may only be used to purchase qualifying or eligible goods and/or services.
Moreover, certain insurance companies, health care providers, and even employers are offering incentives or benefits to customers and/or employees to lead a healthy lifestyle (thereby reducing the load on the health care system, and associated costs for employers). Such incentives may be in the form of discounts or dollar amounts.
Accordingly, it is desirable to provide a single product that can process both eligible goods and/or services as well as receive incentives, be linked to promotions, and be able to be processed both at participating merchants for eligible goods and/or services, but also to be widely accepted at other merchants for ineligible goods and/or services. Such cards may be used by an employer to identify insurance or health care programs, deposit incentives related thereto, deposit payroll or other bonuses, and associate the employee with various promotional programs or benefits.